Pre Session- Gap up opening seen for Sensex on firm Asia trend
20/05/2016
The key domestic equity benchmarks are tipped to open higher on Friday tracking a positive trend in stocks across Asia as commodities including oil and copper staged a comeback while the dollar pulled back against a basket of key currencies, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for May delivery which advanced by 0.19 per cent or 14.5 points at 7,795 at 10:34 AM Singapore time also signal that Dalal Street may open on a bullish note today. Shares of Bank of India, Britannia, IDBI Bank, ITC, Just Dial and Kotak Mahindra Bank will be in focus today as these companies unveil their March quarter earnings numbers. However, continued speculation of a US Fed interest rate hike in June amid comments by top officials calling for further policy tightening in the near-term may weigh on domestic sentiment, trimming gains at Dalal Street. The 30-share Sensex on Thursday marked a second day in the red, tumbling by 304.89 points or by 1.19 per cent to end at 25,399.72 as fears over stricter participatory notes norms and worries over a likely US rate hike next month soured sentiment. With the BJP only winning in Assam, assembly election results did not have much affect on investor mood as the equation at the centre won’t change.
On the Asia front, Shanghai Composite logged slim gains, Hang Seng advanced almost 1 per cent and Japan’s Nikkei 225 rallied as investors weighed the impact of potential US rate hike in June while a rebound in commodities boosted sentiment. Fears that the Fed is getting closer to raising interest rates hit Wall Street on Thursday with each of the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 succumbing to losses. New York Fed President William Dudley stressed that the world’s top central bank is moving closer to tightening interest rates at one of its two upcoming meetings while Richmond Fed’s Jeffrey Lacker also called for higher interest rates. Investors weighed mixed US data with jobless claims dropping by 16,000 to 278,000 last week, leading index rising 0.6 per cent in April while manufacturing in Philadelphia shrank in May
20/05/2016
The key domestic equity benchmarks are tipped to open higher on Friday tracking a positive trend in stocks across Asia as commodities including oil and copper staged a comeback while the dollar pulled back against a basket of key currencies, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for May delivery which advanced by 0.19 per cent or 14.5 points at 7,795 at 10:34 AM Singapore time also signal that Dalal Street may open on a bullish note today. Shares of Bank of India, Britannia, IDBI Bank, ITC, Just Dial and Kotak Mahindra Bank will be in focus today as these companies unveil their March quarter earnings numbers. However, continued speculation of a US Fed interest rate hike in June amid comments by top officials calling for further policy tightening in the near-term may weigh on domestic sentiment, trimming gains at Dalal Street. The 30-share Sensex on Thursday marked a second day in the red, tumbling by 304.89 points or by 1.19 per cent to end at 25,399.72 as fears over stricter participatory notes norms and worries over a likely US rate hike next month soured sentiment. With the BJP only winning in Assam, assembly election results did not have much affect on investor mood as the equation at the centre won’t change.
On the Asia front, Shanghai Composite logged slim gains, Hang Seng advanced almost 1 per cent and Japan’s Nikkei 225 rallied as investors weighed the impact of potential US rate hike in June while a rebound in commodities boosted sentiment. Fears that the Fed is getting closer to raising interest rates hit Wall Street on Thursday with each of the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 succumbing to losses. New York Fed President William Dudley stressed that the world’s top central bank is moving closer to tightening interest rates at one of its two upcoming meetings while Richmond Fed’s Jeffrey Lacker also called for higher interest rates. Investors weighed mixed US data with jobless claims dropping by 16,000 to 278,000 last week, leading index rising 0.6 per cent in April while manufacturing in Philadelphia shrank in May
